The future of rural income and rice production in China

Economic growth in Chinas agricultural sector lags behind growth in industry and services, creating an ever widening rural-urban income gap. Yet growth beyond the farm offers new opportunities for farmers in Chinas more advanced provinces: markets for new crops and increasing farm size. At present, the dual government objectives of increasing rural incomes and increasing rice production are clearly in conflict. Farmers can obtain incomes comparable to non-farm wages only when they stop rice cultivation and switch to more profitable crops. Otherwise, mechanization is necessary to allow large enough increases in farm size to raise household income and maintain national rice production levels.